The largest iron ore processing facility ever built in Western Australia has found its contractor.
In an announcement made this week, Fluor Corporation revealed that it will be working with BHP on the delivery of the South Flank iron ore project, located in the Pilbara region of Western Australia.
Construction had actually begun at the site in July, with Fluor booking the undisclosed project and construction management contract value in the second quarter of 2018.
Fluor will provide construction and project management services, which includes an 80-million-ton-per-year crushing and screening plant, an overland conveyor system and rail-loading facilities. The contract continues Fluor’s work from the feasibility study phase.
The South Flank project will fully replace production from the company’s 80 Mtpa (100 per cent basis) Yandi mine, which is reaching the end of its economic life.
The South Flank project, which has a capital expenditure of $3.4 billion, will target first ore production in 2021.
“With more than 50 years of iron ore experience, Fluor has worked extensively with BHP on numerous successful iron ore projects in the Pilbara region,” said Tony Morgan, president of Fluor’s Mining & Metals business. “We worked closely with BHP to optimize the South Flank project feasibility study and improve the project’s capital efficiency. As part of an integrated project team with BHP, we have developed an approach that optimizes the cost and schedule for the project.”